Agent

Trying to time the bottom

REThink Real Estate
Published on Jan 22, 2009

Q: I am in my mid-20s and make a six-figure salary as a medical professional. I bought my first major purchase as an adult -- a condo in the East Bay Area outside San Francisco -- about six months ago. I got a great price on a great place using a 30-year fixed-rate mortgage I can easily afford, and plan to keep my place for at least 10 years. But now I'm seeing interest rates fall, and prices of other condos in my complex are lower than what I paid. Where does that leave me? Should I have waited? A: Dictionary.com defines a fool's errand as "a fruitless mission or undertaking." Your question brings to mind the two most common fool's errands I see being performed in the context of today's real estate market: (a) wondering whether a past transaction was timed correctly, and (b) trying to time the bottom. These are both fruitless -- or even counterproductive -- in that the timing of a past transaction cannot be undone, and timing the bottom with precision is simply...

Comments